problem: Harley Clothiers' stock currently sells for $19.00 per share. It just paid a dividend of $3.25 per share [i.e., D0 = 3.25]. The dividend is expected to grow at a constant rate of 10 percent a year.
[A] find out the required rate of return? Give your answers to the nearest hundredth.
[B] find out the stock price expected 1 year from now? Give your answer to the nearest hundredth.